Systems and methods for maintaining the viability of a good-until-bettered order type in electronic trading systems

ABSTRACT

Systems and methods of trading items on an electronic trading system according to the invention are provided. The embodiments of the invention are based at least in part on a new order type. The new order type is a modification of a conventional good-until-bettered order type. A good-until-bettered bid/offer is received along with instructions that specify a good-until-bettered increment value and/or duration. The good-until-bettered order is maintained in the electronic trading system until a bid/offer that is better by the specified plurality of standard trading increments is received by the electronic trading system and/or remains in the system for the good-until-bettered duration.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.16/702,072 filed Dec. 3, 2019, which is a divisional of U.S. patentapplication Ser. No. 13/887,486 filed May 6, 2013, which is acontinuation of U.S. patent application Ser. No. 11/407,509 filed Apr.20, 2006 (now U.S. Pat. No. 8,438,097 issued May 7, 2013), which claimsthe benefit of U.S. Provisional Application Ser. No. 60/673,614 filedApr. 20, 2005, each of which is hereby incorporated by reference hereinin their entireties.

BACKGROUND OF THE INVENTION

This invention relates to electronic trading systems. More specifically,this invention relates to order types for use in electronic tradingsystems.

Electronic trading systems typically provide participants with theability to enter orders into the system. More particularly, manyelectronic trading systems provide the ability for participants to enterresting (alternatively referred to herein as “passive”) bids and offers.Such trading systems may preferably hold the most attractive bids andoffers for browsing by other participants. These most attractive bids oroffers may be used to provide views of the “depth” of the pricesavailable on an instrument at price levels other than the best bid andoffer price levels.

In the same or other systems, a best bid—i.e., the bid having the bestprice such as the highest dollar or nominal price or the lowest yield—ora best offer—i.e., the offer having the best price such as the lowestdollar or nominal price or the highest yield—may be removed when arespective better bid or offer enters the market. This allowsparticipants to concentrate on their bids and offers when they are atthe best market price. Bids that are bettered are commonly referred toas “topped” and offers that are bettered are commonly referred to as“cut”. A bid that tops another is one that has a better price—e.g., ahigher dollar or nominal price or a lower yield. Similarly, an offerthat cuts another is one that has a better price—e.g., a lower dollar ornominal price or a higher yield. Such a bid or offer that is removedfrom the trading system on occurrence of it being topped or cut may bereferred to as a “good-until-bettered” order. This is in contrast to a“limit” order that remains listed and available for trading in a tradingsystem until traded or cancelled. In the latter situation, participantsplacing such orders are forced to remain constantly aware of theirexistence. A limit order may be set to remain good until traded orcancelled for a trading session, multiple trading sessions or any othersuitable period.

One of the advantages of a good-until-bettered order type is that insome situations a participant may only want to bid or offer for a shorttime span. Alternatively, a participant may only want to bid or offerwhile her attention is focused on a particular instrument. In suchsituations a good-until-bettered order reduces the duration of the orderin the system.

For example, if the market price of that instrument moves away from theparticipant's desired bid or offer level without her bid or offer orderbeing fully executed, the participant may select to trade in anothersimilar marketplace, or on another instrument. In these situations, theparticipant may not desire to cancel her existing good-until-betteredorder. In the interests of speed and efficiency a good-until-betteredorder type may become preferable to a limit or other order type,especially in fast moving markets where a participant's thoughtprocesses, or a computer's processing speed, are at a premium.

An occasional disadvantage of a good-until-bettered order type occurswhen there is a gap in the inside market—e.g., when there may be arelatively large price differential between the best bid and the bestoffer or even just a price differential of one price increment or more.In such a situation, a participant working a good-until-betteredbid—e.g., showing a desire to transact without wishing to leave the bidif the market moves away from the desired price—could be taken advantageof by another participant topping him, canceling the originalparticipant's topping bid, and subsequently bidding at the original bidprice ahead of the original participant. If a first participant isworking a “good-until-bettered” bid order in such a situation, asubsequent “topping participant” taking advantage of a gap in the marketmay knock the first participant's order out of the trading system eitherunnecessarily, or for the topping participant's trading advantage. Thismay be contrary to what the first participant intended, and often servesto unnecessarily remove liquidity from the trading system by knockingout good-until-bettered orders, even when the market price of theinstrument is not moving away from them.

Another disadvantage of certain types of orders relates to lockedmarkets. Locked markets are markets where a bid and offer exist at thesame price but do not trade. Some trading systems allow a bid and offerto co-exist at the same price without matching them. Reasons that sometrading systems may allow this may include (but are not limited to) thesizes of the bid and offer being incompatible; the customers who enteredthe bid and offer being unable to trade with each other for credit orother reasons; neither participant being willing to pay brokerage thatthe trading system may need as a precursor to matching a trade; or thetrading system awaiting another priority participant to be timed out ina trading auction situation such as in the trading system described inU.S. Pat. No. 6,560,580. Participants may also top and cut in suchtrading systems by locking a contra offer or bid—i.e., placing a bidwith a price that matches a current offer price, or an offer with aprice that matches a current bid price but either not allow the justentered bid and just entered offer to trade, or by taking advantage ofthe trading system rules such that the locking bid or offer will nottrade. In such circumstances, the previous market bids or offers thatare good-until-bettered may be canceled but no trade may occur.

It is therefore an object of the present invention to provide systemsand methods for maintaining the viability of a good-until-bettered orderin electronic trading systems.

SUMMARY OF THE INVENTION

This and other objects are accomplished in accordance with theprinciples of the invention by providing systems and methods of tradingitems on an electronic trading system. The embodiments of the inventionare based at least in part on a new order type. The new order type is amodification of a conventional good-until-bettered order type. A methodaccording to the invention includes receiving a good-until-betteredbid/offer or other suitable order or trading command in a particularmarket; receiving instructions that specify a good-until-betteredincrement value, the good-until-bettered increment value being one thatfurther specifies a standard trading increment amount for the bid/offerand maintains the good-until-bettered bid/offer in the electronictrading system until a bid/offer that is better—i.e., a bid/offer havinga better price by the specified amount of—i.e. at least one—standardtrading increments is received by the electronic trading system. Inother words, the good-until-bettered bid is maintained until it istopped by another bid having a better price—e.g., a higher dollar ornominal price or a lower yield—by the specified amount of standardtrading increments. Similarly, the good-until-bettered offer ismaintained until it is cut by another offer having a better price—e.g.,a lower dollar or nominal price or a higher yield—by the specifiedamount of standard trading increments. Finally, when the bid/offer thatis better by the specified amount of standard trading increments isreceived by the electronic trading system, the good-until-betteredbid/offer is canceled.

Another method according to the invention includes receiving agood-until-bettered bid/offer or other suitable order or tradingcommand; receiving instructions that specify a good-until-betteredduration setting, the good-until-bettered duration setting being on thatfurther specifies a good-until-bettered duration for the bid/offer andmaintains the good-until-bettered bid/offer in the electronic tradingsystem until a bid/offer that is better than the good-until-betteredbid/offer is received by the electronic trading system and remains inthe system for the specified good-until-bettered duration. Finally, whenthe bid/offer that is better than the good-until-bettered bid/offerremains in the system for the good-until-bettered duration, thegood-until-bettered bid/offer is canceled.

BRIEF DESCRIPTION OF THE DRAWINGS

The above and other objects and advantages of the invention will beapparent upon consideration of the following detailed description, takenin conjunction with the accompanying drawings, in which like referencecharacters refer to like parts throughout, and in which:

FIG. 1 is a block diagram of an exemplary system that may be used toimplement the processes and functions of certain embodiments of thepresent invention; and

FIG. 2 is a flow diagram that shows one method according to theinvention.

DETAILED DESCRIPTION OF THE INVENTION

Electronic trading systems that use a conventional good-until-betteredorder type afford participants the advantage of being able to bid oroffer at current markets without concerning themselves with canceling orotherwise removing these bids and offers if the market price moves awayfrom their order. In accordance with the invention, a trading system maybe given a system setting to only cancel good-until-bettered orders ifthey are topped or cut by more than a certain amount X of minimum priceincrements. The initial system setting of X may be two minimum priceincrements for US Treasuries. An exemplary increment in US Treasuries isthat two-year Treasury Notes trade at a market participant standardminimum price increment of ⅛ of 1/32 of one percent of the nominal valueof the Treasury Note. This value of X may be set either by the tradingsystem for a particular participant, or by the particular participant,and the trading system may be configured for either value to prevail.

With such a novel order type, participants have the ability topreferably prevent such topping and cutting for trading advantage. Theexistence of such an order type may in itself dissuade such activity onthe trading system, as protagonists of topping and cutting for tradingadvantage may not know which orders would be knocked out by thepractice.

In some trading systems the existence of a limit order is displayed byan attribute, which may be a A, a*, or some other suitable character, oreven an electronic attribute available for electronic interpretation. Inthese trading systems the existence of good-until-bettered orders maythus be uncovered and become a target for the practice of topping orcutting for trading advantage. The importance of the invention on suchtrading systems may become particularly apparent to participants, inthat it makes such a practice less likely to succeed because manygood-until-bettered orders would not be knocked out by such a practiceof closely tailored topping or cutting.

Additional Solutions:

With respect to a bid that topped an existing bid or an offer that cutan existing offer, the previously entered market bid or the previouslyentered market offer may, in some embodiments of the invention, still betopped or cut, and consequently knocked out of the trading system by anew order which may improve the market price by even less than thepreferably pre-determined price increment or number of price increments,when a timer indicates that the subsequent bid that topped, or offerthat cut, has been in the system for a specified, preferablypre-determined, amount of time. The amount of time may preferably beadjustable depending on the volatility of trading; the time of day; theproximity of economic figures being released; the market price or amoving average of such being outside certain boundaries; or some othersuitable factor.

This embodiment of the invention preferably alleviates the problem ofparticipants who had previously entered market bids and offers fromhaving those market bids and offers topped or cut by another order thatdoes not then exist in the system for a relatively long time. Such atime threshold would continue to permit more serious subsequent bids andoffers, as evidenced by the amount of time these subsequent bids andoffers remain in the system, to cut or top the previously entered bidsand offers, respectively. The amount of time that such a subsequentorder may be listed on the trading system in the “order book” before itcan cut or top another order may act to stop participants abusing thetrading system for their advantage, but still enable the advantages ofthe good-until-bettered order type to persist.

The confluence of the above-described innovations for agood-until-bettered order type further refines and enhances theprotection of a good-until-bettered order from being unnecessarilytopped or cut. Good-until-bettered orders may be firstly protected frombeing prematurely knocked out of the trading system order book via therequirement that new orders be of more than one pre-determined priceincrement better than the good-until-bettered order; and may then beadditionally, or alternatively, protected in that the topping or cuttingorder is required to be maintained in an available state in the tradingsystem for a certain period of time before the good-until-bettered ordermay be knocked out.

In the case of a topping or cutting order improving upon thegood-until-bettered order by more than the pre-determined increment, thetime restriction as explained above stops topping or cutting fromimmediately taking place. In the case of a topping or cutting order thatis less than the pre-determined increment, the time threshold (or,alternatively, duration requirement) allows a genuine topping or cuttingorder to appropriately top or cut, albeit after a preferablypredetermined amount of time. Thus, according to the invention, thegood-until-bettered order type retains its advantage of excusing aparticipant from maintaining, or being required to cancel or remove,active orders or positions in a market for which they no longer have acontinuing bona fide interest, but is preferably protected from beingknocked out of the trading system prematurely where the market price hasnot moved substantially enough to warrant cancellation. Participants whowant bids or offers to linger in the market for a longer period than theorder type above allows (irrespective of whether they are topped, cut,or no longer at the best price level) may use a limit order preferenceas known in the art.

Aggressive Orders as New Markets

In many trading systems, there is a differentiation between a “passive”bid or offer, and an “aggressive” take or hit (otherwise referred to asbuy or sell). Passive orders may exist in the trading system and providelists of bids and offers on a particular instrument, whereas aggressivesells or buys (hits or takes) may execute upon those passive bids oroffers. Preferably, in such trading systems, an order type may beemployed that turns such an aggressive buy or sell order into a passivebid or offer where no contra offer or bid. is available to trade with.This functionality is related to an order type referred to herein as“Order as New Market”. Order as New Market preferably allows theparticipant to enter a Buy or Sell order that may not be at the bestprice and still have it subsequently accepted as a new bid or offer andbe permitted to persist in the order book.

These orders may be accepted as executable orders and stay in thetrading system order lists or order book. For instance, if theparticipant enters an aggressive good-until-bettered buy order and failsto match against any offers—i.e., does not get executed—if the marketprice of the instrument moves up as the participant enters the order,any good-until-bettered order that may be retained by the trading systemmay be knocked out by a better bid entered at that time or afterwards.The Order as New Market functionality preferably turns this aggressivetrade attempt order into a good-until-bettered order, and the newsettings according to the invention, as described in more detail abovefor such orders, may allow the exemplary order to be accepted as a neworder for the trading system order book. The new order may be entered bythe same participant that entered the good-until-bettered order or byanother participant. The new good-until-bettered order type as disclosedabove may protect such an order from being knocked out of the tradingsystem by (1) either better orders corning in just before or almost atthe same time as the participant's aggressive order, or (2) subsequenttopping and cutting orders.

In such a fashion, the participant can be afforded the convenience ofhaving his aggressive order retained by the trading system, whichaggressive order may otherwise have been discarded due to no execution,and also enjoying the added benefit of the trading system keeping saidorder in the order book. The order may be maintained in the order bookup to a configurable amount of price increments away from the best bid,and such that the participant's new order is not knocked out by otherorders received at or about the same time. Preferably, the participantmay also determine a finite period of time that his new order thenremains in the trading system.

Referring to FIG. 1 , exemplary system 100 for implementing theinvention is shown. As illustrated, system 100 may include one or moreworkstations 110. Workstations 110 may be local or remote and areconnected by one or more communications links 102 to communicationsnetwork 103 that is linked via communications link 105 to server 120.Server 120 may be linked to back office clearing center 130 viacommunications link 107.

Server 120 may be any suitable server, processor, computer, dataprocessing device, or combination of the same. Server 120 may be used toimplement the governing logic that processes and executes orders andtrades, and distributes trade and market information, including priceand size information, to workstations 110. Communications network 103preferably includes the Internet but may consist of any suitablecomputer network such as an intranet, a wide-area network (WAN), alocal-area network (LAN), a wireless network, a digital subscriber line(DSL) network, a frame relay network, an asynchronous transfer mode(ATM) network, a virtual private network (VPN), or any combination ofthe same. Communications links 102 and 105 may be any communicationslinks suitable for communicating data between workstations 110 andserver 120, such as network links, dial-up links, wireless links,hard-wired links, etc.

Workstations 110 may be personal computers, laptop computers, mainframecomputers, dumb terminals, data displays, Internet browsers, PersonalDigital Assistants (PDAs), two-way pagers, wireless terminals, portabletelephones, etc., or any combination of the same. Workstations 110 maybe used by participants to enter bid, offer, buy and sell orders for theitems being traded and view market activity corresponding to theseitems.

A typical workstation 110 may include processor 111, display 112, inputdevice 113, and memory 114, which may be interconnected. In a preferredembodiment, memory 114 includes a storage device for storing aworkstation program for controlling processor 111. Memory 114 may alsostore user configuration files, as described below, and other data onthe storage device. The workstation program may include a tradingapplication for running a trading interface that may be displayed ondisplay 112. Input device 113 may be used in conjunction with display112 by users to enter good-until bettered bids/offers and to execute andmonitor trades. Processor 111 may use the workstation program to receivetrade information relating to the items being traded by multiple usersof system 100, or other users, and display such information on display112 or communicate such information to display 112. For example,workstation 110 may receive a good-until-bettered order as well asinstructions that specify: a good-until-bettered increment valuespecifying an amount of standard trading increments for the order,and/or a good-until-bettered duration setting specifying agood-until-bettered duration for the order.

Server 120 may include processor 121, display 122, input device 123, andmemory 124, which may be interconnected. In a preferred embodiment,memory 124 includes a storage device for storing a server program thatprovides the governing logic for controlling processor 121. Processor121 may use the server program to process orders and execute tradescommunicated from various workstations that are operated by multipleusers of system 100, or other users, and communicate trade information,as well as bid and offer information, to workstations 110 and backoffice clearing center 130. More specifically, processor 121 may use theserver program to process orders placed by users in response to usersentering commands using input device(s) 113, and execute trades based onsuch orders, whenever applicable.

For example, server 120 may maintain the good-until-bettered order inthe electronic trading system until a bid or offer that is better thanthe good-until-bettered order by the specified amount of standardtrading increments is received by the electronic trading system and/oruntil a bid or offer that is better than the good-until-bettered orderis received by the electronic trading system and remains in the systemfor the good-until-bettered duration. Thereafter, the server 120 maycancel the good-until-bettered order.

Back office clearing center 130 may be any suitable equipment, such as acomputer, a laptop computer, a mainframe computer, etc., or anycombination of the same, for causing trades to be settled and/orverifying that trades are settled. Communications link 107 may be anycommunications links suitable for communicating data between server 120and back office clearing center 130, such as network links, dial-uplinks, wireless links, hard-wired links, etc.

FIG. 2 is a flow chart 200 that describes one embodiment of a methodaccording to the invention. Step 210 shows providing a user with anopportunity to configure a good-until-bettered increment setting. Step220 shows providing a user with an opportunity to configure agood-until-bettered duration setting. Step 230 shows receivinggood-until-bettered order information for a good-until-bettered order.Step 240 shows placing the good-until-bettered order on an electronictrading platform available to trade. Preferably the good-until-betteredorder incorporates the increment setting and/or the duration setting.Alternatively, the system monitors the good-until-bettered order andmaintains it within the system until the appropriate conditions haveoccurred.

If the good-until-bettered order is not immediately acted upon, asqueried in step 250, another trading participant, or the sameparticipant that entered the good-until-bettered order, may enter asecond order on the same side of the market as the good-until-betteredorder, as shown in step 260.

In such a circumstance, the good-until-bettered order may remain in thesystem even though trading priority has passed to the second order, asshown in step 260.

Step 270 shows that the good-until-bettered order is preferably notwithdrawn (alternatively referred to herein as “cancelled”) from themarket until the pre-determined time period passes and/or the secondorder is a sufficient number of increments better than thegood-until-bettered order.

Step 280 shows that in response to the withdrawal of an order, thesystem may be configured, either by a user or by a system configuration,to preferably immediately generate a second order on behalf of theparticipant that entered the good-until-bettered order. The second orderis preferably on the same side of the market as the good-until-betteredorder. The second order is preferably entered and maintained at asystem-set or user configured number of increments away from the bestorder on the same side of the market. Such a generated order allows theparticipant associated with the good-until-bettered order to maintainparticipation in a market that has moved away from his originalgood-until-bettered order, while limiting his exposure todifficult-to-predict market changes.

For example, a good-until-bettered bid may be maintained until it istopped by a better bid by the specified amount of standard tradingincrements and/or may remain in the system for the specifiedgood-until-bettered duration. A better bid may be a bid with a higherprice, such as a bid higher in dollar or nominal price, or a bid with alower price, such as a bid lower in yield. Similarly, agood-until-bettered offer may be maintained until it is cut by a betteroffer by the specified amount of standard trading increments and/or mayremain in the system for the specified good-until-bettered duration. Abetter offer may be an offer with a lower price, such as a bid lower indollar or nominal price, or an offer with a higher price, such as anoffer higher in yield.

It has been shown that systems and methods for providing agood-until-bettered order type according to the invention are provided.

The embodiments described hereinabove are further intended to explainbest modes known of practicing the invention and to enable othersskilled in the art to utilize the invention in such, or other,embodiments and with the various modifications required by theparticular applications or uses of the invention.

Accordingly, the description is not intended to limit the invention tothe form disclosed herein. Also, it is intended that the appended claimsbe construed to include alternative embodiments.

What is claimed is:
 1. A method of trading items on an electronictrading system, the method comprising: controlling, by at least oneprocessor: receiving, over a communication network, from a firstcomputing device, a good-until-bettered bid; specifying agood-until-bettered duration for the good-until-bettered bid, from agood-until-bettered duration seating which is based on real time marketinformation received over the communication network; automaticallyresponsive to receiving the good-until-bettered bid, activating anelectronic timer to time the good-until-bettered duration; maintainingthe good-until-bettered bid in the electronic trading system until a bidthat tops the good-until-bettered bid is received, over thecommunication network from a second computing device, by the electronictrading system; determining, based on a timing being timed by theelectronic timer, whether the good-until-bettered bid remains in theelectronic trading system for the good-until-bettered duration; andautomatically responsive to determining that the bid that tops thegood-until-bettered bid remains in the electronic trading system for thegood-until-bettered duration, canceling the good-until-bettered bid andimmediately generating a second order on behalf of a user of the firstcomputing device with which the good-until-bettered bid is associated.2. The method of claim 1, further comprising controlling, by the atleast one processor, requiring the bid that tops the good-until-betteredbid to be different by a predetermined amount than thegood-until-bettered bid before canceling the good-until-bettered bid. 3.The method of claim 1, further comprising controlling, by the at leastone processor, receiving, over the communication network from anothercomputing device, user instructions that specify the good-until-betteredduration setting.
 4. The method of claim 1, further comprisingcontrolling, by the at least one processor, receiving, over thecommunication network, instructions from the electronic trading systemthat specify the good-until-bettered duration setting.
 5. A method oftrading items on an electronic trading system, the method comprising:controlling, by at least one processor: receiving, over a communicationnetwork, from a first computing device, a good-until-bettered offer:specifying a good-until-bettered duration for the good-until-betteredoffer, from a good-until-bettered duration setting Which is based onreal time market information received over the communication network;automatically responsive to receiving the good-until-bettered offer,activating an electronic timer to time the good-until-bettered duration;maintaining the good-until-bettered offer in the electronic tradingsystem until an offer that cuts the good-until-bettered offer isreceived, over the communication network from a second computing device,by the electronic trading system; determining, based on a timing beingtimed by the electronic timer, whether the good-until-bettered offerremains in the electronic trading system for the good-until-betteredduration; and automatically responsive to determining that the offerthat cuts the good-until-bettered offer remains in the electronictrading system for the good-until-bettered duration, canceling thegood-until-bettered offer and immediately generating a second order onbehalf of a user of the first computing device with which thegood-until-bettered offer is associated.
 6. The method of claim 5,further comprising controlling, by the at least one processor, requiringthe offer that cuts the good-until-bettered offer to be different by apredetermined amount than the good-until-bettered offer before cancelingthe good-until-bettered offer.
 7. The method of claim 5, furthercomprising controlling, by the at least one processor, receiving, overthe communication network from another computing device, userinstructions that specify the good-until-bettered duration setting. 8.The method of claim 5, further comprising controlling, by the at leastone processor, receiving, over the communication network, instructionsfrom the electronic trading system that specify the good-until-betteredduration setting.
 9. An electronic trading system comprising: a serverincluding at least one processor configured to control: receiving, overa communication network, a good-until-bettered order; specifying agood-until-bettered duration for the good-until-bettered order, from agood-until-bettered duration setting which is based on real time marketinformation received over the communication network; automaticallyresponsive to receiving the good-until-bettered order, activating anelectronic timer to time the good-until-bettered duration; maintainingthe good-until-bettered order in the electronic trading system until abid or offer that is better than the good-until-bettered order isreceived, over the communication network from a first computing device,by the electronic trading system; determining, based on a timing beingtimed by the electronic timer, whether the good-until-bettered orderremains in the electronic trading system for the good-until-betteredduration; and automatically responsive to determining that the bid oroffer that is better than the good-until-bettered order remains in theelectronic trading system for the good-until-bettered duration,canceling the good-until-bettered order and immediately generating asecond order on behalf of a user of the first computing device withwhich the good-until-bettered order is associated.
 10. The system ofclaim 9, wherein the second offer differs from a current best offer by apredetermined plurality of increments.
 11. The system of claim 9,wherein the maintaining the good-until-bettered offer comprisesmaintaining the good-until-bettered offer until an offer having a pricethat is lower than that of the good-until-bettered offer by a specifiedamount of standard trading price increments is received, over thecommunication network from a given computing device, by the electronictrading system.
 12. The system of claim 9, wherein the maintaining thegood-until-bettered offer comprises maintaining the good-until-betteredoffer until an offer having a price that is higher than that of thegood-until-bettered offer by a specified amount of standard tradingprice increments is received, over the communication network from agiven computing device, by the electronic trading system.
 13. The systemof claim 9, wherein another offer that cuts the good-until-betteredoffer is received, over the communication network at the at least oneprocessor, from a given computing device of trading participantassociated with the good-until-bettered offer.
 14. The system of claim9, wherein: the good-until-bettered order is a good-until-bettered bid;and the at least one processor is configured to control deactivating thegood-until-bettered bid when a bid is entered into the electronictrading system, over the communication network, from the first computingdevice, at a predetermined number of trading increments higher than thegood-until-bettered bid, and in which the trading increments compriseprice increments.
 15. The system of claim 9, wherein: thegood-until-bettered order is a good-until-bettered bid; and the at leastone processor is configured to control deactivating thegood-until-bettered bid when a bid is entered into the electronictrading system, over the communication network, from the first computingdevice, at a predetermined number of trading increments lower than thegood-until-bettered bid.
 16. The system of claim 9, wherein the secondorder is a predetermined number of increments away from thegood-until-bettered order.
 17. The system of claim 9, wherein the secondorder is on a same side as the good-until-bettered order.
 18. Anon-transitory storage medium configured to store instructions which,when executed by at least one processor, control: receiving, over acommunication network, from a first computing device, agood-until-bettered bid; specifying a good-until-bettered duration forthe good-until-bettered bid, from a good-until-bettered duration settingwhich is based on real time market information received over thecommunication network; automatically responsive to receiving thegood-until-bettered bid, activating an electronic timer to time thegood-until-bettered duration; maintaining the good-until-bettered bid inthe electronic trading system until a bid that tops thegood-until-bettered bid is received, over the communication network froma second computing device, by an electronic trading system; determining,based on a timing being timed by the electronic timer, whether thegood-until-bettered bid remains in the electronic trading system for thegood-until-bettered duration; and automatically responsive todetermining that the bid that tops the good-until-bettered bid remainsin the electronic trading system for the good-until-bettered duration,canceling the good-until-bettered bid and immediately generating asecond order on behalf of a user of the first computing device withwhich the good-until-bettered bid is associated.